Correction of material errors The tax authority may proceed to correction of material errors identified in the tax administrative acts on its own initiative, or further to an application submitted by the taxpayers.
4.11 Fiscal sanctions
Material errors are errors or omissions with respect to the name, capacity of parties of the fiscal legal relationship, computation errors or other errors similar to these, and do not refer to the substance of the tax act.
Non-filing of tax returns by the respective deadline may attract the following fines:
The corrected act will be notified to taxpayers. Obligation to provide information Taxpayers or their appointed representatives are obliged to provide, in writing, the tax authorities with the requested information necessary for the determination of the facts regarding the tax position. The tax authorities may request information from other persons, such information being considered only if confirmed by other evidence. Charge of proof Taxpayers are held responsible to prove the facts and deeds supporting their declarations and appeals to the tax authorities, whereas the latter have the obligation to motivate the amount payable by taxpayers.
Failure to submit tax returns and failure to pay taxes in due time entails fines and penalties as follows: Failure to file tax returns
• RON 500 to RON 1,000 for individuals • RON 1,000 to RON 5,000 for legal entities Failure to submit the recapitulative statement shall be sanctioned with a fine of 2% of the total amount of intra-community supplies/acquisitions of goods that have not been declared/undeclared differences due to submission of Recapitulative statements that contain incorrect or incomplete amounts. The fine will be reduced by 50% if the taxable person corrects the Recapitulative statement by the legal term of submission of the next statement. Failure to provide transfer pricing documentation in conditions requested by the tax authorities is subject to a fine of up to RON 14,000.
Interest and penalties on delays in payment of tax due For the late payment of tax liabilities, late payment interest and late payment penalties are due, as follows: • Late payment interest, computed at 0.04% per day of delay • Late payment penalties due for outstanding tax liabilities of more than 30 days: 5% for outstanding tax liabilities paid within the next 60 days; 15% for outstanding tax liabilities remained unpaid thereafter. The penalty for the late payment of tax liabilities due to the local budgets is as follows: late payment charges of 2% are due, computed to the amount of outstanding tax liabilities, assessed for each month or fraction of the month, starting the day immediately following the deadline and up to their settlement. Additionally, for failure to withhold or failure to pay taxes withheld at source (taxes on salary type income, dividend income and non-residents’ income), a fine ranging between RON 1,000 and RON 27,000 be applied, depending on the fiscal obligations.
Taxpayers remain liable for the payment of fines for late filing of returns regardless of the payment of the tax due.
Romania Business Passport 2011 edition
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